Market intelligence (MI)

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Marketing ResearchAaker, Kumar, Leone and Day

Eleventh Edition

Instructors Presentation Slides


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ChapterOne

A Decision MakingPerspective on

Marketing Intelligence

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Marketing Research 11th Editionhttp://www.drvkumar.com/mr11/


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Market Research



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Business Intelligence BI is the ability to access data from multiple sources within an

organization and deliver it to business users for analysis

It links the disparate operational systems to the end users of thedata, thus creating an environment with free flow of information

It offers a reliable barometer of the business performance

It helps to analyze what is behind trends and anomalies in the

business

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Business Intelligence

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Provide data on

Business Intelligence

Financial

Intelligence

Marketing

Intelligence

Accounting

Intelligence

Marketing

Research

Management

Intelligence....................

Prospects Customers Competition Products/Markets

Primary Sources

Secondary Sources Standardized Sources

Customer Relationship

Marketing/ Database Marketing



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What is Marketing Intelligence?

Market intelligence (MI) is, the process of acquiring and analyzing

information in order to understand the market (both existing and

potential customers); to determine the current and future needs and

preferences, attitudes and behavior of the market; and to assess

changes in the business environment that may affect the size and

nature of the market in future.

- Cornish S. L

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Need for Marketing Intelligence

Producers have little direct contact with consumers (geographicaldistance and channel layers).

Channel has little knowledge about customer attitudes, preferencesand changing tastes.

Need to understand competition, without spying on them.

Management goals involve sales targets and market share achievement.

Need to identify successful new product developments early in theprocess to ensure growth and revenue maximization by finding a

balance between costs and prices of products.

The need is to look at least 5 to 10 years in advance Pharmaceutical companies do it on a regular basis because they have to

plan for what happens when a particular patent expires.

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Domains of Marketing Intelligence

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Marketing Research

Marketing Research, a critical part of Marketing Intelligencehelps by providing accurate, relevant and timely (ART)information

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Links consumer, customer, and public to the marketerthrough information used to:

Identify and define marketing opportuni ty and

problems

Generate, redefine and evaluate marketing actions

Monitor marketing performance

Improve understanding of marketing as a process

(from AMAs official definition of Marketing Research)



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Role of Marketing Research in

Managerial Decision Making

Four Stages of Market Planning Process

Situation analysis

Strategy development

Marketing program development

Implementation

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Marketing Planning Process

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Performance monitoring

Refining strategies and program

Define the business scope and served

market segments Establish competitive advantages

Set performance objectives

Situation

Analysis

StrategyDevelopment

Marketing

ProgramDevelopment

Implementation

Understand the environment and the market

Identify threats and opportunities

Assess the competitive position

Product and channel decision

Communication decisions

Pricing

Personal selling decisions



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Situation Analysis

Analysis of

Market environment

Market characteristics

Consumer behavior

Research Approaches

Organize information obtained from prior studies(secondary)

Focus groups

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Strategy Development

Market Research Provides Information to Assist

Management With Three Critical Decisions:

What business should we be in?

How will we compete?

What are the objectives for the business?

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Marketing Program Development

Programs embrace specific tasks

Action program usually focuses on a single objective in support of one

element of overall business strategy

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1. Segmentation decisions

2. Product decisions

3. Distribution decisions

4. Advertising and promotiondecisions

5. Personal selling decisions

6. Price decisions

7. Branding decisions

8. Customer satisfaction decisions

Representative Decisions that Draw onMarketing Research:



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Implementation

Starts with decision to proceed with a new program or strategy

Set specific measurable objectives for all elements of marketing program

Shift research focus to :

"Did the elements achieve their objectives?"

Should the marketing program be continued, discontinued, revised orexpanded?"

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Relevance

Type and Nature of Information Sought

Timing

Availability of Resources

Cost-benefit Analysis

Factors Influencing Marketing Research Decisions


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Ethics in Marketing Research

Ethics of the Sponsor

Overt and covert purposes

Dishonesty in dealing with suppliers

Misuse of research information

Ethics of the Supplier

Violating client confidentiality

Improper execution of research

Abuse of Respondents

Falsifying answers

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Conquering Latino Homes

Hispanics account for nearly 15% of the U.S. population.

Research shows that Latino households contribute $600 billion of $1.3

trillion purchasing power of multicultural population.

In 2003 only 5.1% of total advertising dollars in the United States was

focused on Latinos.

By 2050, Hispanic population would represent 25% of US population.

What do you think the problem is?

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P&G Luring Women with their

Feminine Toothpaste

P&G has came out with Rejuvenating Effects a gender specific

toothpaste targeting the female customers, who do 82% of the grocery

shopping.

The flavor and package of the product was decided on the basis of the

results from a customer survey filled out by women.

Though the product is priced slightly higher than the other brands P&G

hopes to make women think about the toothpaste in the same light as

skin care lotions and shampoo.

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Harley Davidson Exploring New Markets

Problem: Flat domestic scales

Solution:

In 1999, Harley-Davidson started a rental program which provided a way to hook

customers on riding and thereby entice them into buying a motorcycle.

40 percent of those enrolled in the program were female and about 30 percentwere under the age of 35

Result:

Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days

worldwide in 2004.

32 percent of rental customers surveyed bought a bike or placed an order after

renting, another 37 percent were planning to buy one within a year.

Nearly half of the renters spent more than $100 on Harley-Davidson accessories,such as T-shirts and gloves.

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End of Chapter One

Market intelligence (MI)

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